Galaxy Digital, owned by bitcoin bull Mike Novogratz, has agreed to acquires well-known cryptocurrency depository BitGo for $1.2 billion in cash and stock.
May 5, 2021 | AtoZ Markets – Mike Novogratz’s company, Galaxy Digital, has agreed to buy BitGo, an independent digital assets infrastructure provider. The company announced this in an official press release. The deal will amount to $1.2 billion in cash, as well as in Galaxy Digital (33.8 million shares) when the company goes public.
As part of the deal, Galaxy Digital will receive:
- Regulated custodian from BitGo Trust Companies in South Dakota, New York, Switzerland and Germany.
- Over 400 new clients worldwide.
- A team of over 50 engineers and personnel dealing with key security products and infrastructure.
Recall that in its report for the first quarter of 2021, Galaxy Digital announced plans to list on the US stock exchange in the second half of this year. BitGo shareholders will own about 10% of the combined companies.
Also as part of the takeover, BitGo CEO Mike Belsh will become Galaxy Digital’s deputy CEO and board member at Galaxy Digital. Earlier, AtoZ Markets reported that PayPal failed to negotiate with custodian BitGo. The official reason for the failure of the deal remains unknown, but Belsh then said that the depository was not making a profit, as it was in “growth mode”.
A little later, PayPal bought another crypto storage infrastructure provider Curv for $200 million.
Last November, Galaxy Digital also acquired two cryptocurrency trading firms: DrawBridge Lending and Blue Fire Capital. DrawBridge specializes in cryptocurrency lending and Blue Fire Capital focuses on providing two-way liquidity.
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